Insurers paid out huge amounts in 2023, with daily benefits over $350m supporting millions across Canada
Canada’s life and health insurers reached a record in benefit payouts last year, totalling $128 billion.
This amount, which includes health insurance and life insurance claims along with insurance-based retirement products, marked a 13 percent increase from the previous year. On average, over $350 million was paid out daily.
Stephen Frank, president and CEO of the Canadian Life and Health Insurance Association, highlighted the significance of these benefits.
“The benefits that life and health insurers provide through workplace plans and individual policies contributed significantly to Canadians' health and financial security,” he said.
He further emphasized the scale of these payouts, noting that the amount provided by insurers in 2023 exceeded the federal government’s combined spending on old age benefits, child benefits, and employment insurance.
The 2024 edition of Canadian Life & Health Insurance Facts revealed that last year, life and health insurers provided coverage for nearly 30 million Canadians, which amounts to 75 percent of the population.
Claims for health, drugs, and dental care reached a record $36.6bn, reflecting a 13 percent increase over the previous year. Insurers also provided nearly $10bn in disability benefits, supporting 12 million people who were unable to work.
Employment in the insurance sector increased as well, with nearly 180,000 Canadians working in the industry, up by more than 3,000 from the previous year. Insurers also served a global clientele, providing insurance products to nearly 120 million people worldwide.
In 2023, benefits included nearly $63bn paid out in retirement benefits through annuities, over $48bn in health claims, and $17bn in life insurance payouts. Prescription drug costs remained the largest category of health benefits, totalling $15bn.
However, there was significant growth in claims for paramedical services, such as massage and physiotherapy. Additionally, counselling services saw continued growth, with claims reaching $730m, more than doubling the amount from four years earlier.
This increase reflects a growing awareness and support for mental health by Canadian employers.
Frank also noted the economic impact of insurers, pointing out that they invested $960bn in long-term assets. “Insurers also did their part to contribute to Canada's economic growth with $960bn invested in long-term assets,” Frank said.
He added that the industry contributed $11bn to the country’s tax base, with corporate and federal capital taxes seeing a staggering 80 percent increase in 2023.
